DE4CC0DE-5FC3-4494-BCBF-4D50B00366B5
A-Brands

IPO of Danone's Medical-Nutrition Business Mooted

By square1
Share this article
IPO of Danone's Medical-Nutrition Business Mooted

Danone is considering an initial public offering of its medical-nutrition business after struggling to get the price it wants in a sale, said people with knowledge of the matter.

The company is preparing a possible stock market listing next year even as it still discusses a sale, according to reports.

Danone has so far failed to reach an agreement after holding talks with Fresenius SE and buyout firms, as well as Hospira and Nestle SA, its reported. 

The unit, whose products include malnutrition supplement Fortimel, could be valued at more than €3 billion three billion euros, people familiar with the matter have said. Companies often pursue both a sale and an IPO at the same time to get the best value on an asset.

Owners of companies including Spanish cable operator Grupo Corporativo Ono SA and UK roadside assistance business RAC pursued listings before being acquired this year.

ADVERTISEMENT

Selling the unit may help Danone buy bigger assets as it seeks to reduce the significance of its dairy division.

Companies in Europe raised $67 billion in IPOs this year, the most since 2007 as investors bet on a recovery in the region’s economies, according to data compiled by Bloomberg.

A representative for Danone declined to comment.

Revenue at the medical-nutrition business, Danone’s smallest unit, rose 10 per cent last quarter, the steepest increase in the past four years, led by growth in Turkey, the U.K., Brazil and China.

Bloomberg, edited by ESM

Get the week's top grocery retail news

The most important stories from European grocery retail direct to your inbox every Thursday

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our terms & conditions and privacy policy. You can unsubscribe at any time.